Harrah’s cites economy in revenue fall

Friday, Aug. 8, 2008 | 11 a.m.

Beyond the Sun

Harrah's investor relations and earnings reports

Sun archives

Archive of gaming stories

Harrah's Entertainment today reported a 4 percent decline in revenue and a 10 percent decline in property-level earnings before interest, taxes, depreciation and amortization, joining competitors that have been hard hit by the economic downturn.

Chief Executive Gary Loveman said the downturn is as challenging as any he has witnessed in the last decade.

"We are taking the right actions to weather the storm," including reducing expenses, he said. The company also is pushing forward with upgrades at several properties, including the mid-2009 opening of a 665-room tower at Caesars Palace and meeting room expansion at a cost of at least $1 billion.

Revenue at the company's Las Vegas casinos fell 5 percent and earnings before interest, taxes, depreciation and amortization fell 7 percent.

Customers apparently spent less at the company's Las Vegas casinos than those outside of Las Vegas. In Las Vegas, play among VIP and higher-rated gamblers fell 7 percent, while it fell 16 percent among lower-level and unrated players in the second quarter compared with a year ago. Outside Las Vegas, gambling volume declined 5 percent and 9 percent, respectively.

Discussion: 1 comment so far…

By maitrut

9/15/08 at 9:25 a.m.

Suggest removal

I used to be loyal to Bally's ONLY from 1994 to 2006, then Harrah's took over from Park Place and jacked the rates up and started slamming us into S Tower rooms even when we asked for N Tower w/view. Heck...we spent $750 a trip at the restaurants/bars at the hotel alone and another 1000 in gambling, but they acted like we didn't exist....now my income has substantially increased and they won't see a penny...MGM always takes care of us and we really like all the upgraded amenities for our 3-4 trips a year! Poo on Harrah's......